Brits fear economic troubles ahead

A third of all Britons are concerned about the economic situation in the country and many are putting major purchases such as buying a home on hold.

First time buyers (FTBs) are not entering the market because they fear that their financial situation may deteriorate.

They have good reason to believe this, with 23 per cent admitting that their debt levels are unmanageable.

"This is crunch time for consumers and it couldn't come at a worse time of year. In the run-up to Christmas, traditionally one of the biggest periods of consumer spending, people are feeling less well-off and are worried about the future," said Ann Robinson from uSwitch, which carried out the research.

"They are concerned about their jobs, their homes and their ongoing ability to manage their debts and bills.

"More than half our take home pay is now eaten up by debt repayments, but our ability to repay and manage this debt is clearly faltering. The banks are being forced to write-off vast sums and, as a result, they are tightening their lending belts. This means that credit will become both harder for consumers to get and more expensive. The credit crunch will claim casualties," she added.

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